Investment Advisor Warns that U.S. Government Won’t Allow Corporates To Continue Replacing USD With Bitcoin

  • An investment advisor, Dan Nathan warns that the United States government will not allow corporations to keep replacing dollars with Bitcoins
  • Elon Musk’s Tesla investment of $1.5 billion in Bitcoin could spur the US government to make sweeping legislation
  • The benefits of the short term will be nothing compared to the slump if government regulations kick in – Dan Nathan

Investment advisor, Dan Nathan in an interview with CNBC, explained that the future of Bitcoin and other crypto-currencies is a murky one following Elon Musk’s Tesla investment of $1.5 billion in BItcoin.

Not only did the announcement start a price rally, but several large corporations are also looking to follow Tesla’s path in making huge Bitcoin investments. He said the US government will not seat and watch corporations like Tesla replace dollars with bitcoin.

Dan Nathan opined that the U.S. government won’t, “let the dollar fall away from being the reserve currency for the world.” he said. This is a real possibility if this trend goes unchecked.

What You Should Know About Dan Nathan

Dan Nathan is the principal of Risk Reversal Advisers, a firm that provides investment banks, investment advisors, and private companies with consultancy services.

With decades of experience under his belt, Dan Nathan garnered considerable experience as an equity and options trader in the late 1990s and through 2000 at major hedge funds such as SAC, Exis, Cheyne Capital

He also worked with the equity derivatives of Merrill Lynch. Currently, he serves as a regular panelist on CNBC’s Fast Money and runs a podcast with a considerable following.

On the Flipside

  • Morgan Stanley strategist, Richie Sharma believes Bitcoin’s meteoric rise will see it replace the US dollar as the world’s reserve currency
  • The Office of the Comptroller of the Currency has issued a circular which allows federally chartered banks to use cryptocurrency for banking transactions and settlements
  • General Motors CEO, Mary Barra says the company has no plans in investing in BItcoin

Bitcoin Faces An Uncertain Future

Dan Nathan explained that the future of the crypto market looks bleak even though the market has seen several institutional investors buy cryptocurrency worth over $1 billion.

He stated that “the U.S. Treasury and the U.S. government will not let this thing get out of hand where literally corporates are starting to replace dollars to a large extent with bitcoin.”

When asked what the government can do to stem this growing trend, he said that the government has wide regulatory powers and they will use their powers.

He explained that “We’ve already seen that. We’ve seen it to some extent. I’m just telling you that they are not going to let the dollar fall away from being the reserve currency for the world.”

The principal of Risk Reversal categorically stated that short-term benefits would be nothing compared to the slump that could happen if government regulations happen. Regardless, Bitcoin and other cryptos are growing in use cases.

Already, Twitter has suggested making payments to staff in Bitcoin and has also laid plans to increase its cash reserve with cryptos as companies like LMax Group, Etoro, Ziglu have all indicated an interest in making the switch.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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